Chapter 5.25
TRANSPORTATION NETWORK COMPANY LICENSE
Sections:
5.25.030 Business license required.
5.25.040 TNC license required.
5.25.050 TNC license requirements.
5.25.060 TNC driver requirements.
5.25.080 Vehicle inspection and maintenance.
5.25.090 Insurance requirements.
5.25.100 TNC license application – Contents.
5.25.110 Application fees and renewals.
5.25.120 Registered agent required.
5.25.140 Operational requirements.
5.25.160 Revocation, suspension, or denial of TNC license.
5.25.010 Purpose.
The purpose of this chapter is to provide for and promote the safety and welfare of the general public. Nothing contained in this chapter is intended nor shall be construed to create any liability on the part of the city or its employees for any injury or damage resulting from the failure of the endorsement holder to comply with the provisions of this chapter, or by reason or in consequence of any act or omission in connection with the implementation or enforcement of this chapter by the city or its employees. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.020 Definitions.
For the purpose of this chapter, the following definitions apply:
(1) “Digital network” means an internet-enabled platform or application used to connect passengers with TNC drivers.
(2) “Director” means the city of Oak Harbor finance director or designee.
(3) “Operate a TNC in the city of Oak Harbor” means a TNC uses its digital network to connect a TNC driver to a passenger for a trip originating or terminating in the city of Oak Harbor.
(4) “Operate as a TNC driver in the city of Oak Harbor” means a TNC driver accepts a trip request over a TNC’s digital network that originates or terminates in the city of Oak Harbor.
(5) “TNC driver” means an individual who uses a personal vehicle to provide transportation services arranged through a TNC’s digital network.
(6) “TNC vehicle” means a personal vehicle used by a TNC driver to provide transportation services arranged through a TNC’s digital network.
(7) “Transportation network company” or “TNC” means an entity that uses a digital network to connect passengers to TNC drivers who use personal vehicles to transport passengers for compensation between geographical points chosen by the passenger. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.030 Business license required.
(1) It is a violation of this chapter for any TNC to operate in the city of Oak Harbor without a current and valid city of Oak Harbor business license.
(2) It is a violation of this chapter for any driver, who is an independent contractor affiliated with a TNC, to operate as a TNC driver in the city of Oak Harbor without a current and valid Oak Harbor business license. It is the responsibility of the TNC to communicate this requirement to TNC drivers.
(3) TNC drivers must keep a copy of their business license in their vehicle when logged on and accepting rides from the TNC’s digital network. It is the responsibility of the TNC to communicate this requirement to TNC drivers.
(4) Except as described in subsections (2) and (3) of this section, the TNC shall have no obligations as to TNC driver business license requirements. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.040 TNC license required.
(1) It is a violation of this chapter for any TNC to operate in the city of Oak Harbor without a current and valid city of Oak Harbor TNC license.
(2) The director or designee may issue a TNC license; provided, that the TNC applicant submits an affidavit sworn under penalty of perjury, on a form provided by the city, that to the best of the applicant’s knowledge, formed after a diligent inquiry into the facts, the TNC is in full compliance with this chapter, including, but not limited to, all driver, vehicle, insurance, and operational requirements.
(3) TNC drivers are permitted to operate in the city under their affiliated TNC’s current TNC license issued under this chapter. TNC licenses are not issued to TNC drivers.
(4) The TNC license is effective for one year. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.050 TNC license requirements.
(1) The TNC or its agent must maintain accurate and up-to-date records for all TNC drivers accessing its digital network to provide TNC services in the city of Oak Harbor. Said records must include the driver’s name, age, address, social security number, criminal history, driver’s license, motor vehicle registration, vehicle safety inspection records, and proof of at least the minimum automobile liability insurance coverage required by the state of Washington, including insurance for use of the vehicle for transportation of passengers for hire as required by Chapter 48.177 RCW as enacted or subsequently amended.
(2) Prior to permitting a person to act as a TNC driver on its digital network, and annually thereafter, the TNC must obtain and review a criminal background check report for such person. The criminal background check must include a search of no less than five years of database history, unless prohibited by law, in which case the span of the search will be for the maximum number of years permitted by law. The criminal background check must include local, state, and national criminal history databases and national and state sex offender registries. Any person who is on a sex offender registry or who has a criminal conviction, within the past five years, of crimes involving driving under the influence of alcohol or controlled substances, felony fraud, sexual offenses, felony property damage or theft, acts of violence, acts of terror, reckless driving or negligent driving, or use of a motor vehicle to commit a felony, shall not be permitted to act as a TNC driver on the TNC’s digital network. The TNC or its agents must maintain records of such criminal background checks for a period of two years. For purposes of this section, the term “criminal conviction” includes a “conviction or other disposition adverse to the subject” as defined under RCW 10.97.030, and bail forfeitures.
(3) The TNC may only permit an individual to act as a TNC driver on its digital network if it finds that the standards set forth in this section are met by such individual. The TNC must revoke a driver’s authority to act as a TNC driver on its digital network if the standards set forth in this section are not met. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.060 TNC driver requirements.
(1) TNC drivers shall certify that they have no known physical or mental infirmity which jeopardizes their ability to safely operate as a TNC driver transporting the public.
(2) TNC drivers shall be at least 21 years of age.
(3) TNC drivers shall possess a valid Washington State driver’s license and shall have been continuously licensed as a driver by the state of Washington and/or another state for at least one year immediately prior to operating as a TNC driver in Oak Harbor. A home state driver’s license with active military ID or student ID with proof of full-time enrollment and nonresident status may be an acceptable alternative, subject to review and approval.
(4) TNC drivers shall certify that they have insurance that meets the minimum liability requirements for the state of Washington, including insurance coverage for use of the vehicle for transportation of passengers for hire as required by Chapter 48.177 RCW as enacted or subsequently amended.
(5) TNC drivers shall not have been convicted or found to have committed three or more moving violations during any 12-month period during the three years prior to operating as a TNC driver in Oak Harbor.
(6) TNC drivers shall possess proof of motor vehicle registration and proof of current automobile liability insurance. The TNC shall certify that all drivers have insurance that meets the requirements of this chapter, including insurance coverage for use of the vehicle for transportation of passengers for hire as required by Chapter 48.177 RCW as enacted or subsequently amended. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.070 TNC requirements.
(1) The TNC or its agent shall maintain accurate and up-to-date records for all TNC drivers accessing its digital network to provide TNC services in the city of Oak Harbor. Said records shall include the driver’s name, age, address, social security number, criminal history, driver’s license, motor vehicle registration, vehicle safety inspection records, and proof of at least the minimum automobile liability insurance coverage required by the state of Washington, including insurance for use of the vehicle for transportation of passengers for hire as required by Chapter 48.177 RCW as enacted or subsequently amended.
(2) Prior to permitting a person to act as a TNC driver on its digital network, and annually thereafter, the TNC shall obtain and review a criminal background check report for such person. The criminal background check shall include a search of no less than five years of database history, unless prohibited by law, in which case the duration of the search shall be the maximum number of years permitted by law. The criminal background check shall include local, state, and national criminal history databases and national and state sex offender registries. Any person who is on a sex offender registry or who has a criminal conviction, within the past five years, of crimes involving driving under the influence of alcohol or controlled substances, felony fraud, sexual offenses, felony property damage or theft, acts of violence, acts of terror, reckless driving or negligent driving, or use of a motor vehicle to commit a felony, shall not be permitted to act as a TNC driver on the TNC’s digital network. The TNC or its agents shall maintain records of such criminal background checks for a period of two years. For purposes of this section, the term “criminal conviction” includes a “conviction or other disposition adverse to the subject” as defined under RCW 10.97.030, and bail forfeitures.
(3) The TNC shall only permit an individual to act as a TNC driver on its digital network if it finds that the standards set forth in this section are met by such individual. The TNC shall revoke a driver’s authority to act as a TNC driver on its digital network if the standards set forth in this section are not met. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.080 Vehicle inspection and maintenance.
(1) TNC vehicles operating in the city of Oak Harbor shall be no more than 15 years old.
(2) The TNC shall inspect or cause to be inspected annually, and every year thereafter, every motor vehicle used by a TNC driver before allowing the driver to use the motor vehicle to provide transportation services.
(3) The inspection required in subsection (2) of this section must include, without limitation, an inspection of the foot and emergency brakes, steering, windshield, rear window, other glass, windshield wipers, headlights, tail lights, turn indicator lights, braking lights, front seat adjustment mechanism, doors, horn, speedometer, bumpers, steering system, muffler, exhaust, tires, rear view mirrors, and safety belts. The inspection must ensure that all of the components listed are in proper functioning order.
(4) The TNC shall maintain vehicle safety inspection records for a minimum of three years. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1922 § 1, 2021; Ord. 1849 § 1, 2018).
5.25.090 Insurance requirements.
The TNC shall comply with the automobile liability insurance requirements contained in Chapter 48.177 RCW as enacted or subsequently amended. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.100 TNC license application – Contents.
In order to obtain a TNC license, an applicant shall file a complete application with the finance department.
(1) All requirements pursuant to identify the business as per issuance of a business license under Chapter 5.01 OHMC;
(2) Declaration of compliance with OHMC 5.25.050 and 5.25.070;
(3) Declaration to enforce TNC driver compliance with OHMC 5.25.060, 5.25.080, and 5.25.140; and
(4) Insurance requirements pursuant to OHMC 5.25.090. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.110 Application fees and renewals.
(1) Application and First-Year Fee. Upon submission of the TNC license application, the applicant shall pay the nonrefundable application fee per the master fee schedule adopted by resolution of the city council. If the applicant is approved, the application fee shall serve as the first-year license fee.
(2) Annual Renewals.
(a) Process. TNC license renewals will be processed pursuant to OHMC 5.01.110(2).
(b) Fees. TNC license renewal fees must be paid in full per the master fee schedule adopted by resolution of the city council.
(c) Submit Changes With License Renewal. The TNC must submit any changes of the information to the finance department required in OHMC 5.25.050 along with the annual TNC license fee. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.120 Registered agent required.
The TNC shall maintain a registered agent for service of process in the state of Washington. The name, telephone number, and physical address of the registered agent shall be submitted to the city of Oak Harbor at the time of the license application. The TNC shall notify the city of Oak Harbor in writing of any changes to its registered agent during the term of the license. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.130 Audit.
(1) No more than twice per license year, the city may audit the TNC’s records to review compliance with this chapter. Each audit shall be limited to records relating to no more than 20 randomly selected TNC drivers operating in the city of Oak Harbor.
(2) The audit will occur at Oak Harbor City Hall; provided, that the city may, in its discretion, agree to an alternate location.
(3) Notwithstanding the foregoing, the city may require the TNC to produce records at any time to investigate a specific complaint regarding compliance with this chapter. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.140 Operational requirements.
(1) TNC drivers shall accept only rides arranged through a TNC’s digital network and shall not solicit or accept street hails.
(2) While in service in the city, each TNC vehicle shall display removable trade dress, marks or decals which are visible from 50 feet and clearly associate the vehicle with a licensed and endorsed TNC company.
(3) The TNC’s software application or website shall display for the passenger the first name and photograph of the TNC driver as well as the make, model, and license plate number of the TNC vehicle.
(4) The TNC’s software application or website shall display for the passenger the applicable rates being charged and the option to receive an estimated fare before the passenger enters the TNC vehicle.
(5) The TNC shall implement a zero tolerance policy on the use of drugs or alcohol applicable to any TNC driver on its digital network. The TNC shall provide notice of the zero tolerance policy on its website, as well as the procedures to report a complaint about a driver with whom the passenger was matched and for whom the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the ride. The TNC shall immediately suspend a driver upon receipt of a passenger complaint alleging a violation of the zero tolerance policy. The suspension shall last the duration of the investigation. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.150 Issuance or denial.
The finance department shall issue a license upon satisfactory completion of the TNC license application and payment of all fees. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.160 Revocation, suspension, or denial of TNC license.
(1) A TNC license may be revoked, suspended, or denied by the director for any of the following reasons:
(a) Failure to meet or maintain any of the requirements or qualifications set forth in this chapter for obtaining a TNC license.
(b) A materially false statement contained in the application for the license.
(c) Any violation of this chapter.
(2) Prior to any revocation, suspension or denial of any TNC license, the city must inform the TNC of their right to a hearing thereon. Such hearing, if requested, must be conducted before the city prior to the implementation of any revocation, suspension or denial. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.170 Appeals.
Any person aggrieved by the denial or revocation of a TNC license may file a notice of appeal with the city administrator. The appeal under this section will be governed by Chapter 1.24 OHMC. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.180 Enforcement.
The director shall have the administrative authority to implement and enforce this chapter. The director may adopt rules and regulations for its administration, not inconsistent with this chapter. This provision shall not be construed to abrogate or limit the jurisdiction of the Oak Harbor police department to enforce any provisions of this chapter or of any other city ordinance relating to motor vehicles or the operation of taxicabs or TNC vehicles. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).
5.25.190 Violations.
Violations of this chapter constitute a Class 1 offense and shall be governed by the procedures of Chapter 1.28 OHMC. (Ord. 1936 § 1 (Exh. A), 2021; Ord. 1849 § 1, 2018).